1. Field of the Invention
The present invention is generally related to enterprise value chains, and more particularly to a system, computer program and method for implementing and managing a value chain network.
2. Discussion of the Background
In an increasingly global economy, there is a need for computer networks to share information between computer applications and to better adapt to meet the needs of the business enterprise(s) and computer applications using such networks. Business enterprises of all types are faced with the challenge of managing and optimizing ever more complex supply chains. These supply chains, often called “value chains,” are characterized by a high degree of collaboration, cooperation, and interdependency between the enterprise and other entities or partners in the chain (e.g., raw materials producers, component manufacturers, distributors, and the like). The business goal of managing and optimizing a value chain is to minimize the costs incurred by all participants in the chain while maintaining a high level of customer service and maximizing profits. In order to achieve this goal, the enterprise strives to reduce the quantity of stored goods in the value chain; white minimizing opportunity loss by maintaining a sufficient inventory level to satisfy customer demand.
To meet customer demand, an enterprise forecasts the demand of the future and creates a plan of the movement and placement of the inventory to meet the customer demand. This plan typically includes a plurality of actions that need to be taken to maintain the inventory at a certain level white maximizing customer service level. An important aspect of managing the value chain is the execution of this plan. However since the value chain can be complex and may involve multiple partners, unexpected events and contingencies often occur that adversely impact the inventory levels and the ability of the enterprise to meet demands. For example, a delivery truck may break down causing an interruption in supply, or a storm may cause a large unexpected rise in demand for construction materials. These unexpected events hereinafter referred to as “exceptions,” cause the state of the value chain to deviate from the existing plan. The deviation may be an increase or decrease in inventory at various locations for various items and/or an inability to meet customer demand.
Value chains and/or supply chains typically span multiple companies and/or entities and sometimes include hundreds or even thousands of companies and/or entities. In the prior art, each company and/or entity maintained its own value chain system. In particular, each company and/or entity maintained its own value chain network locally on its own computer systems, databases and computer programs associated with the value chain network. Even with so-called multi-tier or multi-echelon systems known in the prior art, each company and/or entity maintained its own multi-tier or multi-echelon system. There was no single version of the truth with respect to the data associated with the value chain network, and due to the size and complexity of most value chains, schedule-driven and batch processing value chain management systems of the prior art often result in stale or out of date data being used.
Thus, there currently exist deficiencies associated with enterprise value chain logistics planning, and, in particular, with implementing and managing a value chain network.